Via Facebook Community Harbor Waves a contributor to be named. Feel free to join the conversation.
This is such an interesting economic issue. I'm long 10yr treasuries, because even though there's this inflation issue at hand, I also see other competing factors: 1) the Fed is buying 2s through 10s 2) the forward curve keep...s flattening 3)... where is everyone going to put their money right now - equities are still over valued 4) there's still a lot of delevering going on 5) housing prices are falling or not rising - the ATM machine is gone to provide fuel for the traditional consumer driven economy 6) foreclosures are still weighing on the fixed income and credit markets 7) the mortgage market cannot gets rates low enough to make any money 8) banks are tight wads with all the cash they have, because they probably need as much cushion as possible for all the toxic assets that they still have... 9) the unemployment rate and underemployment rate are still high - who has money to spend - people are putting off classic expenditures... And, the inflation bubble is growing? Not sure... There's so much deflation that all the money the govt and fed are throwing at it is hardly making a dent. Perhaps, if equities correct and other markets correct, there will be good risk/reward to move back in from US treasuries, but that has not happened.